Benzinga | Jun 28, 2021 02:03PM EDT

Hitachi Focuses On US Market Based On Biden's $2T Infrastructure Spend: FT

* Hitachi Ltd (OTC:HTHIY) President Keiji Kojima plans to ramp up digital talent-hiring from India to compete in the U.S. following a $9.5 billion deal to acquire software engineering company GlobalLogic, the Financial Times reported.

* Kojima estimates a large part of industries, including manufacturing, to return to North America.

* He assigned the next ten years as a decade of growth following almost completing its asset restructuring program.

* Hitachi's U.S. focus follows years of efforts to transform the sprawling Japanese conglomerate into an IT and infrastructure specialist by merging and selling listed subsidiaries.

* Hitachi will drive its U.S. investment following President Joe Biden's $2 trillion infrastructure plan rollout. Kojima mentioned U.S. semiconductor companies' partnerships.

* In May, Hitachi announced that its subsidiary Hitachi High-Tech would establish a semiconductor research facility in Oregon.

* North America is Hitachi's largest market outside of Japan, accounting for 13% of its annual revenue.

* Hitachi acquired Michigan's industrial robotics integrator JR Automation for $1.4 billion in 2019. Hitachi aimed to increase revenue in the North American segment from ?73 billion three years ago to ?200 billion ($1.8 billion) in the current financial year.

* Analysts estimate challenges in overseeing the expensive integration of GlobalLogic to expand Hitachi's software business while digitizing its hardware assets. The group's operating profit margin of 6% also remains low compared to global peers like Siemens AG (OTC:SIEGY) and ABB Ltd (NYSE:ABB).

* Kojima plans to innovate Hitachi's products by using GlobalLogic's digital resources. Hitachi might carry out additional acquisitions in railway and healthcare businesses to fill digital capability gaps.

* Price Action: HTHIY shares are up 0.73% at $116.51 on the last check Monday.